VIEWPOINT REPORTS 31 PERCENT SEQUENTIAL INCREASE IN FIRST QUARTER REVENUES
NEW YORK--May 9, 2001-Viewpoint Corporation (NASDAQ:VWPT), a leader in digital marketing technologies and services, today reported net revenues for the first quarter ended March 31, 2001 of $2.8 million, a 31 percent increase over the fourth quarter of 2000. The Company reported a "cash earnings" loss (loss before depreciation, amortization and non-cash stock-based compensation charges) of $5.8 million or $0.15 per share for the first quarter of 2001, compared to a loss of $9.3 million or $0.29 per share for the fourth quarter of 2000. The fourth quarter of 2000 results exclude $4.5 million of non-recurring charges related to write-downs of notes receivable.
In addition, the Company reported a net loss of $12.0 million or $0.32 per share for the quarter, as compared to a net loss of $16.5 million or $0.51 per share in the fourth quarter of 2000.
Cash and marketable securities on March 31, 2001 totaled $28.4 million compared to $29.0 million on December 31, 2000. The Company continues to carry no long-term debt. The cash used in continuing operations was $6.4 million during this first quarter.
"We are continuing to experience an increase in the demand for our technology; and we are pleased with our solid performance in the first quarter. Our objective is to continue to fuel the revenue momentum and at the same time maintain a tight and efficient operation in order to achieve operating cash flow breakeven by this calendar year-end," commented Bob Rice, Viewpoint Corporation`s Chairman, President and CEO.
Recent Highlights:
The Company`s gross margin improved to 67.5% of sales during the 1st quarter, a substantial improvement over the 4th quarter of 2000 which was 48.5% of sales. This improvement results from an increase in license revenue.
The Company`s operating costs during the first quarter were $8.1 million compared to the fourth quarter level of $10.9 million, excluding the $4.5 million of non-recurring charges related to notes receivable write-downs. Tighter control of operating expenses, primarily marketing and advertising, led to a sequential 26 percent reduction in operating costs.
During the quarter, six customers accounted for revenues in excess of $100,000 each.
In order to preserve its liquidity, the Company entered into agreements enabling Computer Associates to sell Viewpoint shares in private transactions to institutional investors that were otherwise restricted until August 2001 and, in exchange, Computer Associates agreed to accept either newly-issued Viewpoint shares or cash at the Company`s option, in repayment of contingent promissory notes issued by Viewpoint to Computer Associates in the acquisition of Viewpoint Digital. The contingent notes are due June 8, 2001 and April 30, 2002. "This agreement provides flexibility for the Company to preserve its cash position in a challenging financing environment," stated Jeffrey J. Kaplan, the Company`s Executive Vice President and Chief Financial Officer.
Viewpoint retained Fred Brown, a 20-year senior marketing professional, as executive vice president of sales (effective April 1, 2001). He will oversee the Company`s direct sales force, which has grown by 60% over the past quarter to 40 professionals.
The Company`s technology has been deployed on numerous new, high profile websites, including: Dell Corporation, Eddie Bauer Furniture and Shoes, NordicTrack, Shimano Fishing Equipment, Samsung, Remington Arms Company and the Italian textile giant, Flou.
Adobe`s Atmosphere, a new professional Web tool designed to author, view and interact with immersive virtual 3-D worlds, is powered by the Viewpoint Media Player, which provides its ultra-high fidelity object display and animation capabilities.
CONFERENCE CALL
The company has scheduled a conference call to discuss the first quarter financial results and guidance with the investment community for 5 p.m. (EDT) today. Conference call details:
Date/Time: Wednesday, May 9, 2001 5:00 p.m. (EST)
Telephone Number: 888-813-7835
Reservation Number: 18546226
It is recommended that participants call at least 10 minutes before the call is scheduled to begin. The conference call can also be accessed on the Internet through Vcall at www.vcall.com.
A replay of the conference call in its entirety will be available approximately one hour after its completion on Vcall and for 24 hours by calling 800-633-8284 and entering the above reservation number.
About Viewpoint
Viewpoint is a leading provider of digital marketing technologies and services. Viewpoint licenses its proprietary technologies for e-commerce initiatives and provides a full range of professional services for implementing enhanced digital rich media marketing solutions that integrate online advertising, promotions and e-mail strategies. The Company is headquartered in New York City with offices in Los Angeles, San Francisco, Salt Lake City, London and Tokyo. Visit the Viewpoint Web site at http://www.viewpoint.com.
This press release contains forward-looking statements and similar expressions that reflect Viewpoint`s current expectations about its future performance, and are subject to risks, uncertainties and other factors that could cause Viewpoint`s actual performance to differ materially from those expressed in, or implied by, these forward-looking statements. For information about these and other risks, uncertainties and factors, please review the disclosure contained in the Company`s filings and reports on file with the Securities and Exchange Commission.
Back...
